Shares of workspace solutions provider WeWork (NYSE:WE) are in the green today after the company took steps towards deleveraging its capital structure and boosting its liquidity level.
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The company reached a series of agreements with its bondholders (holding about 60% of WE’s bonds), SoftBank (Vision Fund II), and a third-party investor resulting in a $1.5 billion reduction in WE’s net debt. Additionally, the move also provides the company with new funding and capital commitments of nearly $1 billion.
Further, the company’s debt maturity has also been extended by two years to 2027. Overall, Wall Street has a consensus price target of $5.83 on WE, implying a humongous 480.1% potential upside in the stock.
That’s after a nearly 80% slide in the share price over the past year. At the same time, short interest in the stock remains more than elevated at nearly 39% at present.
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